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Breaking Down Reddit: 25 Analysts Share Their Views
In the latest quarter, 25 analysts provided ratings for Reddit (NYSE:RDDT), showcasing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 10 | 6 | 8 | 0 | 1 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 3 | 0 | 0 |
| 2M Ago | 6 | 3 | 3 | 0 | 0 |
| 3M Ago | 3 | 3 | 2 | 0 | 1 |
In the assessment of 12-month price targets, analysts unveil insights for Reddit, presenting an average target of $148.12, a high estimate of $220.00, and a low estimate of $75.00. This current average represents a 17.97% decrease from the previous average price target of $180.57.
Interpreting Analyst Ratings: A Closer Look
A comprehensive examination of how financial experts perceive Reddit is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Alan Gould | Loop Capital | Lowers | Buy | $200.00 | $210.00 |
| Brad Erickson | RBC Capital | Announces | Sector Perform | $125.00 | - |
| Colin Sebastian | Baird | Lowers | Neutral | $120.00 | $140.00 |
| Ken Gawrelski | Wells Fargo | Lowers | Equal-Weight | $115.00 | $168.00 |
| Aaron Kessler | Seaport Global | Announces | Buy | $165.00 | - |
| Ronald Josey | Citigroup | Raises | Buy | $158.00 | $150.00 |
| Ken Gawrelski | Wells Fargo | Raises | Overweight | $168.00 | $158.00 |
| Rohit Kulkarni | Roth MKM | Raises | Neutral | $130.00 | $120.00 |
| Eric Sheridan | Goldman Sachs | Raises | Neutral | $140.00 | $124.00 |
| Michael Morris | Guggenheim | Lowers | Buy | $165.00 | $170.00 |
| Naved Khan | B. Riley Securities | Lowers | Buy | $220.00 | $222.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $150.00 | $140.00 |
| Laura Martin | Needham | Raises | Buy | $145.00 | $135.00 |
| Brian Nowak | Morgan Stanley | Lowers | Overweight | $140.00 | $210.00 |
| Ronald Josey | Citigroup | Lowers | Buy | $150.00 | $220.00 |
| Eric Sheridan | Goldman Sachs | Lowers | Neutral | $124.00 | $185.00 |
| Thomas Champion | Piper Sandler | Lowers | Overweight | $140.00 | $220.00 |
| Justin Post | B of A Securities | Lowers | Neutral | $110.00 | $190.00 |
| Doug Anmuth | JP Morgan | Lowers | Neutral | $110.00 | $185.00 |
| Youssef Squali | Truist Securities | Announces | Buy | $150.00 | - |
| Ken Gawrelski | Wells Fargo | Lowers | Overweight | $158.00 | $215.00 |
| Devin Ryan | JMP Securities | Lowers | Market Outperform | $155.00 | $200.00 |
| Laura Martin | Needham | Maintains | Buy | $220.00 | $220.00 |
| Michael Morris | Guggenheim | Lowers | Buy | $170.00 | $210.00 |
| James Cordwell | Redburn Atlantic | Announces | Sell | $75.00 | - |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Reddit. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Reddit compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Reddit's stock. This analysis reveals shifts in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Reddit's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Reddit analyst ratings.
Delving into Reddit's Background
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits." The platform's unique community-driven model relies on volunteer moderators to manage content and maintain subreddit guidelines. Reddit generates revenue through advertising, Premium Memberships, and data licensing agreements.
Unraveling the Financial Story of Reddit
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Positive Revenue Trend: Examining Reddit's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 61.49% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: Reddit's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.67%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Reddit's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.2%, the company may encounter challenges in delivering satisfactory returns for shareholders.
Return on Assets (ROA): Reddit's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.1%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.
The Core of Analyst Ratings: What Every Investor Should Know
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.